Super’s Rollercoaster: Understanding Investment Returns
Super balances rise and fall with the markets. For pre-retirees, dips can be stressful. Yet history shows long-term growth remains strong.
The Recent Ride
- 2021–22: average returns –3.3%
- 2022–23: rebounded around 9%
- 2023–24: another ~9% gain
Balanced funds average about 7.6% long term.*
The Real Risk: Emotional Reactions
The biggest danger isn’t markets – it’s panic selling.
Staying the Course
- Know your risk profile
- Focus on long-term averages
- Contributions during downturns buy assets cheaply
Final Thought
Super is designed for the long term. Short-term drops are bumps on the road – but staying invested is key.
References
- Association of Superannuation Funds of Australia (ASFA). Super Fund Returns, 2024.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
